Internet Media Buzzfeed, Vice Face Further Downsizing Amid Financial Woes

BuzzFeed Inc BZFD and Vice Media are reportedly set to undergo further downsizing as they grapple with financial challenges these digital media companies faced that soared to high valuations nearly a decade ago. 

BuzzFeed, which has seen its stock plummet by over 97% since going public in 2021, is reportedly exploring the sale of its popular food-focused sites, Tasty and First We Feast. 

Buzzfeed, once valued at $1.7 billion, has experienced a steep decline in its stock value, prompting the company to divest its news operation and seek buyers for subsidiaries like Complex Networks.

Simultaneously, Fortress Investment Group, now overseeing Vice Media following its bankruptcy acquisition, the Wall Street Journal noted, is engaged in discussions to sell Refinery29, a women’s lifestyle-focused platform.

Vice Media, once valued at $5.7 billion, faced a failed attempt to sell the entire company and is now exploring the sale of Refinery29.

Fortress Investment Group, which acquired Vice in bankruptcy proceedings, is reportedly in talks with potential bidders for Refinery29. The women’s lifestyle platform witnessed a decline in revenue from $50 million in 2022 to $30 million last year. 

This move comes after an unsuccessful attempt by Fortress to find a buyer for Vice as a whole, which includes its news brand, production studio, and creative agency.

Tasty, an integral part of BuzzFeed’s revenue diversification strategy, is known for its cooking-focused content and branded products. 

BuzzFeed’s decision to sell Tasty and First We Feast indicates the challenging landscape faced by digital media companies, struggling with a volatile advertising market and decreasing traffic from search engines and social media.

The financial challenges these once-thriving digital media giants face highlight broader industry trends, where many companies that once promised to disrupt traditional publishing are now closing down or significantly downsizing.

Price Action: BZFD shares are up 0.98% at $0.22 on the last check Thursday.

Photo by Matt Haughey via Flickr